OTTAWA: There has been an extraordinary increase in employment opportunities in Canada, with the latest report showing the unemployment rate at its lowest level in two years.
A foreign news agency report said that the Canadian economy created more new jobs than expected in July, after which the unemployment rate in the country has decreased to its lowest level in almost two years.
According to experts, the latest data shows that despite US tariffs and global tensions, the Canadian economy is coping well with the pressure. According to Statistics Canada, 75,100 new jobs were created in the country in July, while experts’ surveys had expected only 16,500 new jobs.
As a result of the increase in employment, the unemployment rate has decreased for the third consecutive month and has dropped from 6.5 per cent in June to 6.4 per cent in July. This is the lowest unemployment rate in Canada since July 2024. Full-time jobs increased by 38,600 in July, while part-time jobs increased by 36,600.
The bulk of the new jobs were created in the private sector, where wholesale and retail trade, financial and insurance services, and professional and scientific services performed well.
Wage growth slows
According to the data, average hourly wages for permanent employees increased by 3% on an annual basis in July, compared to 3.7% in June. This is the lowest wage growth rate since February 2022, when the increase was recorded at 2.8%. According to experts, the slowdown in wage growth could be an important signal for the central bank regarding inflationary pressures.
Signs of economic recovery
Economists say the July jobs data is further evidence that the Canadian economy is gaining momentum after a weak start to the year. The Bank of Canada said on July 15 that the Canadian economy is coping well with the challenges posed by tariffs imposed by US President Donald Trump and uncertainty over the Middle East conflict.
The Bank of Canada had forecast annual growth of 2.5 per cent in the second quarter, but preliminary data released later showed economic growth likely to reach 3.4 per cent, the highest in nearly three years. Following the release of the strong jobs data, the Canadian dollar also strengthened, reaching an almost eight-week high against the US dollar.
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